Chapter 401 Rest and Business 5
Of course Jake was Emily's boss and if he asked she would have to abandon what she was doing to talk to him, but Jake didn't want to do that because it would be bad for himself and it was he who had put so many responsibilities on Emily to do and so he had to tell them beforehand to talk to her.
After Eva left to go to the restaurant Jake also decided to go to Matthew's house, Matthew was a man who didn't like offices and was almost always at his house, so Jake never had to call beforehand to let him know when he was going.
When Jake arrived the maids soon took him to the living room to wait until they let Matthew know that Jake had arrived, in a few minutes just as he expected who had arrived was Oliver who was now much closer to Matthew and almost spent all his time in this house.
"Hi, Jake, how long, I thought you would come here at the end of last year, so we were waiting for you."
"Hi, Oliver, I didn't come here at the end of last year because I didn't want to bother you again, I didn't need money like last time and I was able to wait for you to close the balance sheet and prepare the profit-sharing correctly."
"So this is what happened, if you need, you can look for us at the end of the year, we already have the values prepared long before the end of the balance sheet."
"I have been watching your games at the university, your team really played very well, even though I don't understand basketball so much I was impressed that you are close to breaking a game record without losing."
"I am very happy with this, my team is really doing well and I hope we will continue to win the games until we win the NCAA tournament this year."
"You are playing very well, I saw that you were the best player in all of the college basketball last season and this one too, I always knew you were a basketball genius, but not even I expected you to be so amazing."
"Thanks for the compliments, but I think I still have a lot to improve if I really want to become one of the best players, there are still a lot of players who are much better than me in many ways."
"That's right, I think you may be able to play as well as Michael Jordan in the future, so you'll be better than him because he won several marathons and gold medals too, Hahaha."
Jake and Oliver talked about several things that happened in that time when they didn't talk, the two were friends besides talking about business, sometimes Jake thought he was more friends with Oliver and Matthew than Joseph, maybe it was because he was almost 50 years of mental age.
In addition, they had known each other for over 8 years and now that Jake was older there was a lot that Oliver talked to him that he couldn't talk about a few years ago, they also had a lot of topics for them to talk about.
After that, they went over to where Matthew was, while they were talking Matthew was solving some of the company's problems and was also remembering about the report he had to tell Jake about sales of the new digital camera.
"Hi, Jake, I thought you wouldn't be coming to talk to me about the company anymore, Hahaha, I'm sure you'll be happy when you hear the sales were good last year."
Jake was excited when he saw how happy Matthew was to talk about the company's sales, Jake hoped they would actually be able to sell more digital cameras this time, because the first time they sold the digital camera, Matthew's company didn't have much recognition with one of the best camera manufacturers.
So the company had to invest a lot in marketing and advertising and most people were suspicious of the company and did not buy the camera because they were not confident if it was really the best digital camera.
So some people started to buy the camera believing and then saw that the camera was really good, the television programs also spoke with professionals in the field who confirmed the quality of the camera that was better than all the professional cameras on the market.
So they managed to have a good sale after three years, this time the advertisement said that this digital camera was much better than the previous digital camera, so some bought it and saw that it really was sometimes better than the previous camera.
So whoever bought before and had financial resources would certainly buy again, and whoever didn't buy because they still had doubts would buy because a company with more than 1 successful product was a respectable brand.
"Hahaha, I know you're curious, okay I'll say, our company achieved the sales record last year, we sold just over 9 million digital cameras, as we sell at a price of one thousand and one hundred dollars, we had a total over 9 billion and $ 900 million in sales."
Jake was really shocked by this much sales, he knew that currently, the digital camera market was at its best and that Matthew's company digital camera was the best on the market for sure.
But not even he imagined getting almost 10 billion dollars in sales, in the last year he had been impressed with the 4 billion dollars in sales of their company, now they have sold more cameras than in almost three years with the latest model of the camera.
That way Matthew would continue to make more money from his company than from the shares that even Jake hadn't thought it would be, but that was very good too, the money that Matthew has earned in the past few years has exceeded what he has earned since opening the company and what I would gain in another 20 years.
"In addition, we were able to earn an additional $ 220 million in sales with the other digital camera and webcam sales, so in total, we earned $ 10 billion and $ 120 million from sales in 1997."
"As we spent less on advertising this time and didn't have to invest in production like we did last time and sold more, we made 60 percent profit from those sales, so we received a profit of $ 6 billion and $ 72 million."
Jake was even more impressed by this, he had talked to Matthew and heard that Matthew intended to get a higher percentage of profit this time because the company was already developed and was able to meet the demand for the products.
But Jake could never expect that they managed to increase by more than 10 percent of profits, Jake knew that part of it was for the amount that was 100 dollars more expensive and it cost the same as the last camera to produce.
He naturally knew how they achieved this value, normally a camera like this would cost much more to develop the technology, to arrive at the final product and also to buy the electronic components from the suppliers.
But since it was Jake who said exactly what they needed to do and also Matthew's own company that manufactured the components that were more expensive, the final value of the camera was much cheaper.
In addition, their company manufactured only a few products and did not have as many employees to pay wages, and they got a discount for buying a lot from suppliers and selling the product at twice the price it cost to produce, which is why their profit was so big like that.
Matthew would receive more than 4 billion and 500 million with his profit share and Jake would receive 303 million and 600 thousand dollars with the participation he had in the company, as Jake had received the shares he had of the company for free, he actually I was very happy to earn so much without investing anything.
"As you know we have to invest a lot in the company again, so again we are going to take 25 percent of the value of the profits and reinvest in the company and 75 percent as a share of the profits."
Jake naturally understood this and agreed with Matthew, in addition, his share was not very large so he would not have to invest much, but Matthew would invest more than $ 1 billion in the company again for the next products.
The truth was that an investor would think it would be a waste to do so, they did not do it because even with all that profit the company's stock market valuation was only 5 billion dollars, thinking how they got more than that amount in profit could be seen as that value was not correct.
So maybe Matthew didn't think about investing half of what they had earned again, a lot of the money invested in the last year hadn't been used yet, they didn't intend to further expand the company and increase the maximum production capacity that they haven't yet had been used.
For investments in technology that Jake had already explained how much less investment was needed than normal, moreover, Matthew was preparing because Jake said that in the future they would have a hard time surviving in the market just by selling digital cameras.
They had to keep investing in technology to put digital cameras in their cell phones as Jake had said, just so the company's market value would increase a lot and their future was guaranteed.
But the truth was that Matthew was already prepared for future failure of the company and that sales would decrease, when that happened he could simply sell the company and so they would earn several times more than they could before Jake helped.
Jake was very happy because after receiving his profit share he no longer had to worry about money, he would soon enter the NBA and also receive millions of salary and endorsements.
But he was happier because he had more money to invest in the Cisco company because he knew he could still earn a lot in those next two years before selling all the shares in 2000.